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New Construction Partner Orientation

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Presenters• Valentina Rozanova

– P4P Pipeline Manager

• Maria Karpman– P4P Technical Support, Modeling Expert and

Consultant

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Agenda

• Program Introduction & Overview• Building Simulation• Lunch (12:00)• Review of Energy Reduction Plan • Commissioning• Combined Heat and Power / Fuel Cells • Q&A Session

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Program Introduction

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PlayersNew Jersey Board of Public Utilities (BPU)

Office of Clean Energy (OCE)Overall Program Management

TRCProgram design, management and reporting

Partners Energy efficiency market players

ParticipantsOwners, developers, managers

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Who is NJ BPU?New Jersey Board of Public Utilities

• In 2003, the New Jersey Board of Public Utilities established the Office of Clean Energy (OCE) - Oversight and delivery of energy efficiency programs

• New Jersey's Clean Energy Program (NJ CEP)- Combination of renewable, residential and C&I incentive based

programs to deliver energy reductions in attainment of NJ Energy Master Plan

- Funded through Societal Benefits Charge

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Who is TRC?• Commercial & Industrial Market Manager for the NJ

Office of Clean Energy– Marketing of programs

– Intake and qualification of applications

– Incentive determination (prescriptive/custom) and payment

– Field verifications/inspections

– Engineering reviews

– Customer support (engineering level project support)

– Contractor/Partner management

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NJ Clean Energy C&I Programs• Benchmarking (no-cost) • SmartStart (prescriptive & custom) both retrofit and new

const.• Local Government Energy Audit Program (LGEA)• Direct Install (DI)• Large Energy Users (LEUP)• Pay for Performance (P4P)

– Existing Buildings– New Construction

• Combined Heat and Power & Fuel Cells (CHP/FC)• Federal SEP funds (non-IOU)

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NJ Clean Energy C&I Programs• Programs budgets are established for 12 months

beginning July 1st through June 30th

– Fiscal year 2014 runs from July 1, 2013- June 30, 2014

• Final program filings (details) can be found here: http://www.njcleanenergy.com/filings

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What is the Pay for Performance Program?• Comprehensively addresses the energy efficiency needs of

the Commercial and Industrial (C&I) sector.

• Provides incentives based on a holistic approach to energy savings in new construction and major renovations.

• Leverages the existing market players (engineering firms, architects, contractors, etc.) for program delivery

• Raises the bar, the more you save the more we pay

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Partners, Customers and TRC• Program Participants must work with Partner

• Partners can bring Participants into the Program • NJCEP website provides Partner List to interested

Participants

• Partners will:• Continue to develop and strengthen market-based relationships

• Act as the building owner’s energy professional

• Promote the Program

• Grow their business

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Goals• Generate energy savings that are verifiable

• Promote a whole building approach & ENERGY STAR® Labels

• Address a wide range of energy saving measures

• Ease of participation, make the Program process painless

• Develop and reward whole building work scopes

• Pay for Performance!

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How the Program WorksStep-by-Step Overview for Partners

Program Guidelines Section 2

Overview

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Submittal and Approval of P4P NC

Application

Development and Approval ofProposed ERP

Implementation of All

Recommended Measures

Development and Approval of

As-Built ERP Commissioning

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Step 1 - Establish Eligibility• New Construction or Substantial Renovation

– Substantial renovation includes:• Change of use and reconstruction of an existing building or space

within;

• Construction work of a nature requiring that the building or space within be out of service for at least 30 consecutive days; OR

• Reconstruction of a vacant structure or a space within.

• At least 50,000* square feet of planned gross heated space

*50,000 sqft requirement does not apply to the following customer classes:– Hospitals

– Non-profits 501(c)(3)

– Public Universities/Colleges

– Local Government (including K-12)

– Affordable multifamily housing (“affordable” is defined as low income, subsidized, HUD, etc.)

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Step 1 - Establish Eligibility

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Step 1 - Establish Eligibility• Located in New Jersey

• Pays Societal Benefits Charge– Customer of one of the seven investor-owned electric and/or gas

utilities

• What defines a “Project”?

One building totaling meeting previously stated requirements

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Step 2 – Submit Application • Submit completed P4P New Construction Application to

TRC– Completed and signed Application and Participation Agreement

– Participant’s W9

• Project assigned to TRC Case Manager

• GET APPROVED!

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P4P New Construction Application

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Who is the Case Manager?

Point of contact once the Application has been approved

Submit to Case Manager:

• All project-related questions

• All project-related documents– Energy Reduction Plans

– Incentive Requests

– Etc…

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Step 3 – Develop Proposed ERP• Develop Proposed Energy Reduction Plan

– Within 6 months of application approval

• Lead initial information session to– Review existing plans– Discuss various design alternatives– Explain drawing detail required for modeling– Engage Commissioning Authority (CxA)

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Step 3 – Develop Proposed ERP• Develop baseline model

– Use approved software– ASHRAE 90.1-2007 standard for baseline model

(current NJ energy code)– Simulation Guidelines

• Create proposed design model incorporating actual design– Minimum performance requirement of energy costs

15% below ASHRAE 90.1-2007 Appendix G baseline

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Step 3 – Develop Proposed ERP• Determine the incremental costs of each

recommended measure

• Ensure cost-effective scope of work (10% IRR)

• Submit Proposed ERP to Case Manager for review and approval.

• Request Incentive #1

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ERP Review Schedule• ERP Rev0 averages 3 weeks in review.

• Subsequent Revisions average 1-2 weeks. • ERPs with Incentives ≤ $500,000 are approved by TRC

and potentially AEG (QC consultant) ---adds 2weeks.

• ERPs with Incentives > $500,000 are approved by TRC, AEG, and BPU. (BPU meets monthly to review projects)---adds 4+ weeks depending on BPU schedule.

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Incentive #1 – Proposed ERPIncentive Amount: $0.10 per gross heated square foot

Maximum Incentive: $50,000 • Requested upon completion and approval of Proposed ERP by Case

Manager– Requires documentation that Participant has paid at least 75% of the

A/E design fees

– Copy of Partner-Participant Contract

– ERP includes Commissioning (Cx) Plan

– Executed Installation Agreement (Incentive contingent upon moving forward with construction)

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Step 4 – Begin Construction • Construction of elements receiving incentives (e.g.

envelope, mechanical, lighting, etc.) should not begin until Proposed ERP is approved and incentives committed. – Exception: Request pre-inspection, can begin work at your

own risk.

• Ensure that recommended measures in proposed design are accurately reflected in construction documents and bid packages

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Step 4 – Begin Construction • Attend pre-bid meeting

• Review selected bids and contracts

• Review construction schedule and offer suggestions • Receive and regularly review field reports to remain

aware of all changes• Update the proposed design model to reflect any

changes in installed measures or costs to inform developer of impact on performance target or cost-effectiveness

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Step 5 – As-Built ERP • Develop As-Built Energy Reduction Plan

– Submitted upon construction completion or within 12 months of Proposed ERP approval (extensions available)

– As-built model incorporates changes that occurred during construction

– Must still show achievement of minimum 15% performance requirement

– As-built costs

• Submit As-Built ERP to Case Manager for approval – Including supporting invoices.

• Request Incentive #2

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Incentive #2 – As-Built ERP Incentive Amount : $1.00 per gross heated square foot

• Post-construction inspection conducted by TRC prior to incentive payment.

Step 6 – Commissioning Report• Submitted within 6 months of As-Built ERP approval

• Must follow Commissioning Plan submitted with Proposed ERP

• Performed by CxA outlined in the Proposed ERP

• Minimum Cx of measures receiving incentives

• Submit Cx Report to Case Manager for approval

• Request for Incentive #3

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Incentive #3 – Cx ReportPerformance Target Incentive Amount

15-17%.................................$0.35

18-20%.................................$0.45

>20%....................................$0.65

• Incentives #2 and #3 combined may not exceed 75% of project incremental cost.

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Notes on Incentives

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• Pay for Performance – New Construction Program Guidelines

• ERP Template

• CxPlan Template

• ERP Excel Tables

• ASHRAE 90.1-2007 (not provided)

Required Tools and Resources

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Program GuidelinesIncludes Guidelines for:• Document Submission

• Incentive Request Process

• Proposed and As-Built Energy Reduction Plans

• Building Simulation

• Incremental Project Costs

• Commissioning Plan and Report

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Questions

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Energy Reduction Plan DevelopmentSimulation Guidelines

Program Guidelines – Section 4

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Scope (Section 4.1)Methodology for calculating a performance rating for new construction projects participating in the Pay for Performance Program

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Objectives • Ensure consistency among different projects

• Facilitate consistent modeling of Baseline components not mentioned in Appendix G

• Establish modeling protocols for measures that ASHRAE 90.1 leaves to the rating authority to determine, and

• Ensure that modeling results are used to drive energy-efficient design

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Software Requirements

(Section 4.2)

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Software Requirements• Software used in the program must comply with ASHRAE

90.1 – 2007 Appendix G

• Approval for use in LEED and Federal Tax Deductions for Commercial Buildings program may serve as the proxy

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Approved Software ToolseQUESTHAPEnergyPlusTrane TraceDOE 2.1

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Approval of New Software• Submit Modeling Software Application to the Market

Manager

• Based on the review, the tool may be accepted for use on pilot projects

• After successful completion of the pilot project(s), the tool will be included in the list of approved software.

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General Modeling Approach

(Section 4.3)

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Simulation MethodologyProposed Design Baseline Design

2007

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Performance Rating = $Baseline-$Proposed

$Baseline

Energy costs are calculated using ASHRAE 90.1-2007 Appendix G modeling protocol supplemented by Simulation Guidelines

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Simulation Methodology• Addenda to ASHRAE 90.1 2007 may be

used, but must be explicitly listed in ERP

• Baseline and Proposed design models shall include all energy costs within and associated with the building project.

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Non-standard MeasuresModeling assumptions that are not addressed in the Simulation Guidelines or ASHRAE 90.1-2007 Appendix G, or calculations made outside of the approved simulation tool must be documented in ERP and are subject to approval by the Market Manager.

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Baseline Design• Must comply with mandatory and prescriptive

requirements of ASHRAE Standard 90.1-2007;

• Must be modeled as described in ASHRAE 90.1 Appendix G and Simulation Guidelines;

• Must not include end uses that do not exist in the Proposed building.

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Proposed Design• Must reflect the specified building components;

• Must comply with the mandatory provisions of ASHRAE Standard 90.1-2007;

• Must include all energy costs within and associated with the building project.

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Schedules of Operation• Schedules must be the same in the Baseline

and Proposed models– except to model non-standard energy efficiency

measures such as demand control ventilation.

• Documentation must be provided in the ERP justifying non-standard assumptions.

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HVAC System Types• Baseline system type must be determined

following ASHRAE Standard 90.1 table G3.1.1A

• Proposed model must reflect actual specified HVAC system.

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Heating and Cooling• All conditioned spaces of both the Proposed and Baseline

design must be modeled as heated and cooled.

• If no cooling system is specified, minimally code complaint system of type determined from Appendix G Table 3.1.1A must be included in both the Baseline and Proposed models.

• With proper documentation, cooling may not be modeled in industrial facilities that have no cooling specified and are unlikely to have it installed in future.

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Building Envelope• Baseline must be modeled with light-weight

assembly types for all above-grade walls, roofs, and floors using the ASHRAE 90.1-2007 prescriptive maximum U-factors.

• Proposed envelope constructions must be modeled as shown on drawings.

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Fenestration• Percentage of vertical fenestration in the Baseline

shall equal that of the Proposed design or 40% of exterior wall area, whichever is less. – Solar and thermal properties must be based on

prescriptive requirements of ASHRAE Standard 90.1

• Proposed fenestration must be modeled as specified.

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Lighting• Baseline lighting must be modeled using

either the whole building or space by space methods described in ASHRAE Standard 90.1 Sections 9.5 and 9.6.

• Lighting in the Proposed design must include all task, ambient, and exterior lighting.

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Other Regulated Systems• For all other systems regulated by ASHRAE Standard

90.1:– Proposed model must reflect actual specified systems

– Baseline must minimally comply with the standard

• Examples include:– snow/ice melting systems; swimming pools; exit signs; parking

garage lighting; exterior lighting power; permanently wired electric motors; etc.

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Process Energy• All process energy must be included in the

simulation.

• Process energy includes:– office and general miscellaneous equipment;

computers; elevators and escalators; kitchen; laundry; lighting exempt from the lighting power allowance; and other loads not regulated by ASHRAE Standard 90.1

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Process EnergyIf process energy is less than 25% of the total Baseline energy cost then process energy must be the same in Baseline and Proposed models unless the difference is documented and approved by Market Manager.

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Process EnergyFor facilities where process energy accounts for more than 25% of the Baseline, the actual process energy must be modeled but may be capped at 25% of Baseline energy cost in performance rating calculations

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Energy RatesEnergy rates from the local utility or the most recent average rates for the applicable rate class and location from DOE Energy Information Administration (www.eia.doe.gov) may be used.

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Energy RatesEnergy cost reduction due to decrease or shift in peak demand in the Proposed design compared to the Baseline may contribute to the performance rating if local utility rates include demand and/or time of use charges.

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Renewable Energy and CHP• Neither CHP nor On-Site Renewable Energy

shall be included in the Proposed building model. These components cannot contribute toward 15% energy target.

• Measures that offset consumption (e.g. Solar Thermal) are OK.

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Alternative Modeling Protocols

(Section 4.5)

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Prerequisites1. Proof of intended participation in LEED 3.0 or

EPAct Commercial Tax Deductions;

2. Completion of all regular P4P program

documentation;

3. Inclusion of all the energy costs within

and associated with the project, including process loads, into the model.

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LEED NC 3.0• The baseline is based on the prescriptive requirements of ASHRAE 90.1 2007

Baseline Building PerformanceP4P

=Baseline Building Performance LEED 3.0

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EPAct Commercial Tax DeductionsThe baseline is based on the prescriptive requirements of ASHRAE 90.1 2001

Baseline Building PerformanceP4P

=N*Baseline Building Performance EPAct

N=0.838 for non-residentialN=0.862 for residential

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LEED 2.2 The baseline is based on the prescriptive requirements of ASHRAE 90.1 2004

Baseline Building PerformanceP4P

=K*Baseline Building Performance EPAct

K=0.95 for non-residential buildingsK=0.977 for residential buildings

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Annual Energy Use Goals kBtu/SF

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Additional Requirements

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Measure-Level Savings (Section 4.3.5) • Partners must submit incremental savings for individual measures

• Order in which measures are added may be based on cost-effectiveness of each measure, or the sequence in which they would likely have been selected for implementation

• To calculate measure-level savings, rank measures and add them one by one to the baseline.

– Must use Alternatives functions (Trace), Parametric Runs (eQuest), or equivalent.

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Measure-level SavingsStep 1: Add the highest ranking measure (M1) to the Baseline design to calculate usage of the Baseline with Measure #1.

Step 2: The savings associated with Measure #1 are estimated by comparing the usage of the Baseline Design to the Baseline + M1 Model from the previous step.

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Measure-level SavingsStep 3: The Baseline+M1 model is then modified to include the measure that was ranked the second (M2) to obtain the Baseline+M1+M2

Step 4: The savings associated with Measure #2 are estimated by comparing the Baseline +M1 model to Baseline+M1+M2 model.

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Measure-level SavingsStep 5: Repeat with remaining measures until the model includes all the measures and is equivalent to the Proposed Design.

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Measure Granularity (Section 4.3.6)• Multiple components or systems may be grouped

and reported as a single measure provided that these components/systems belong to the same end use:

– Different types of lighting fixtures may be grouped

– Lighting and HVAC cannot

• Consult ERP Tables for the allowed measure types.

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Model Validation

(Section 4.6)

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Model Verification Steps• Un-met load hours in the simulation are within the limits

allowed by Section G3.1.2.2 of Appendix G.

• Monthly load distribution is realistic

• Incremental savings of individual measures are realistic and impact end uses as expected

• Energy use intensity and heating/cooling loads are realistic

• Follow recommended model review process for the selected software tool

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Questions

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Energy Reduction Plan DevelopmentOverview

Program Guidelines - Section 3

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Energy Reduction Plan“Roadmap” for comprehensive energy

improvements: – Project Description – Recommended Energy Efficiency Measures

• Description, incremental costs, baseline and proposed simulation results, energy cost savings.

– Financing Plan– Implementation Plan & Schedule– Commissioning Plan – Commissioning Report

Energy Reduction Plan• Utilize:

– ERP Excel Tables

– ERP Word Template

– Cx Plan Template

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Energy Reduction Plan• Must identify total energy costs 15% below ASHRAE 90.1-2007

baseline

• At least 50% of energy cost reduction must come from electricity and/or natural gas utilities which pay into SBC.

• No more than 50% of energy cost reduction may come from lighting measures

• 15% energy cost reduction may not come from a single measure

• Minimum 10% IRR, based on incremental costs

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Workscope Development • Develop Proposed and Baseline Designs using

approved building simulation software; determine Performance Rating percentage

• EPA Target Finder used for building benchmarking

• List measure-specific incremental costs; maintain 10% IRR for project

• Ensure that all performance specifications in ERP are translated into the bid and design documents

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EPA Target Finder (Section 3.3)• Energy Usage of the Proposed design must be

entered into the EPA’s Target Finder, and the resulting score and associated inputs documented and submitted with ERP.

• Target Finder results will not affect incentives and are for informational purposes only.

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EPA Target Finder• Target Finder enables architects and building

owners to set energy targets and receive an EPA rating for projects during the design process.

• Projects that earn a rating of 75 or higher are eligible for Designed to Earn the ENERGY STAR certification and can be submitted for the ENERGY STAR Challenge.

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EPA Target FinderEPA rating for eligible space types

oOffice

oK–12 school

oHospital (acute care and children's)

oHotel/motel

oMedical office

oHouse of worship

oResidence hall/dormitory

oSupermarket/grocery store

oWarehouse-refrigerated and non-refrigerated

oCourthouse

oBank/financial Institution

oRetail store.

Space types not available in Target Finder can be found in2003 CBECS National Average Source Energy Use and Performance Comparisons (CBECS)

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Program Guidelines - Section 3.5

Energy Reduction Plan DevelopmentMeasure Evaluation

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• Lighting: Reduction in lighting intensity (W/ft2), Time clock control, Occupancy sensors, LED exit signs

• HVAC and DHW Measures: EMS/BMS, 2-Speed pumps, Solar water heating, Insulate hot surfaces (condensate tank, steam & HW piping)

• Envelope: Air sealing, Insulate roof deck or attic, Cool roofs

• Refrigeration: Mechanical subcoolers, Evaporator controls

• Other: Elevator motors and controls

Common Efficiency Opportunities

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Minimum Performance StandardsMeasures must meet or exceed:

• Minimum Performance Standards (Program Guidelines, Appendix B)

• ASHRAE 90.1 2007 prescriptive requirements, or

• Local code, whichever is more stringent.

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Examples from the Minimum Performance Standards:

• The minimum water-cooled chiller efficiency level is 0.75 kW/ton. Air-cooled chillers must have an efficiency of at least 1.20 kW/ton.

• Gas boilers must have 85% or greater AFUE

• CFL fixtures must be new and ENERGY STAR qualified. LED fixtures must DLC qualified.

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Include for each measure:Description of Energy Efficiency Measure• Detail of EEM equipment, including key model inputs such as capacity, size, efficiency, U-values,

location, etc.

• Estimated cost

• Description of design components included in the estimated cost, including any labor, overhead, etc. that might differ between the baseline and proposed designs

Description of Baseline Component• Detail of baseline equipment, including key model inputs such as capacity, size, efficiency, U-

values, location, etc.

• Estimated cost

• Description of design components included in the estimated cost, including any labor, overhead, etc. that might differ between the baseline and proposed designs

Measure Evaluation

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Include for each measure:– Detailed energy savings calculations with

analytical and methodological information (included with Model Simulation Report)

– Measure lifetime based on New Jersey’s Clean Energy Program Protocols (Program Guidelines, Appendix A)

Measure Evaluation

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Individual measures aggregated into a proposed work scope will often interact with each other and impact energy savings.

Measure Interactivity

Savings attributable to a package are usually less than the sum of the savings of each measure alone.

Interactive effects will be taken into account in the building simulation+

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• Partner must ensure that all performance assumptions made in the simulation and reflected in the ERP are translated into bid and construction documents.

• Cost savings associated with O&M reduction should be claimed only with solid documentation for savings estimate.

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Energy Reduction Plan DevelopmentIncremental Cost Guidelines

Program Guidelines - Section 3.5

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Incremental Cost • Estimated Incremental Hard

Cost: The difference in material and labor costs between the baseline equipment or system and the proposed improvement for an Energy Efficiency Measure (EEM).

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Incremental Cost • EEM costs are compared to the cost of the ASHRAE

90.1 Baseline Components

• This eliminates concerns of rewarding an inefficient design, and provides for a common reference point across projects.

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Energy Efficiency Measures• EEM: Any proposed design component with an energy

consumption impact that differs from the baseline component (ASHRAE 90.1-2007).

• Incremental Cost may have negative value and should be included as negative.

• Each EEM shall have an associated Estimated Incremental Hard Cost

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Energy Efficiency Measures• Some EEMs may already be incorporated in original

design; should be included in ERP as an EEM.

• The quality level of the baseline component should match the quality level that the developer chooses for the proposed design.

• Incremental Costs should include sales tax; waived for non-profit developers.

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Cost Estimating • First, determine all building components associated with

EEM that would differ from baseline. – Example: Wall insulation

• Case 1- Proposed design includes better insulation; difference from baseline is cost of insulation only.

• Case 2- Proposed design includes different wall type completely; difference from baseline is entire cost of wall construction, including insulation.

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Cost Estimating • Second, determine cost estimation method

– Manual (RS Means)

– Vendor Quotes

– Design Team Calculations

– Online Pricing

• Incremental Hard Cost may be material cost, labor cost, or both.

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ERP Table

Proposed Components Baseline Components

Energy Efficiency Measure

Manufacturer Model CapacityCapacity

UnitsQuantity Efficiency

Efficiency Units

Proposed Cost

Cost SourceComponent Description

Baseline Cost

Cost Source

Incremental Costs

1 $02 $03 $04 $05 $06 $07 $08 $09 $0

10 $011 $012 $013 $014 $015 $016 $017 $018 $019 $020 $0

Total Proposed Project Cost

$0

Total incremental costs: $0

Partner fees for modeling:Partner fees for inspection & verification:

Partner fees for other services*:Total cost: $0

* Describe other services:

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Questions

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Energy Reduction Plan DevelopmentFinancing Plan Guidelines

Program Guidelines – Section 3.6

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Financing Plan Objective • Clearly present how project is to be funded

– Estimated total construction cost of Proposed design

– Partner Fees

– Pay for Performance Program Incentives

• Verify that incentives do not exceed caps

• Include any incentives being pursued with New Jersey investor-owned utilities

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Financing PlanFUNDING

Committed or Requested

Anticipated NJOCE Incentives $0

<Enter source> $0

<Enter source> $0

<Enter source> $0

<Enter source> $0

TOTAL FUNDING $0

COSTS

Total Project Construction Costs at Closing $0

P4P Partner Fees $0

TOTAL COSTS $0

ERP Table

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Energy Reduction Plan DevelopmentImplementation Plan Guidelines

Program Guidelines – Section 3.7

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Implementation Plan Objective• Provide description of proposed

construction schedule– Regulatory approvals

– System design

– Bid documents

– Construction milestones

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111

Construction Schedule

Construction Milestone Planned Date Actual Date

Schematic Design Completion date

Design Development Completion Date

Construction Documents Completion Date

Project Bid Date

Construction Complete Date

ERP Table

Energy Reduction Plan DevelopmentAs-Built ERP Guidelines

Program Guidelines – Section 5

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As-Built ERP Objectives• Verify that the measures specified in the

Proposed ERP were installed

• Incorporate any changes that occurred during construction– Adjust proposed model, as needed

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As-Built ERP Requirements• Verify and/or identify any deviations from the following:

– EEMs installed are the same as planned, or better than in Proposed ERP

– Nameplate data matches

– Energy consumption/equipment output matches assumptions in Proposed ERP

– Control systems are set and functioning

– Measures are likely to achieve, or exceed, expected energy savings

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As-Built ERP Requirements• For each EEM with significant changes, the As-Built ERP

must include:– Initial equipment/assumptions used in Proposed ERP

– Actual equipment and operating conditions

– Method to update building model

– Initial and as-built energy savings

– Initial and as-built incremental costs

As-Built ERP Requirements• Must still meet 15% minimum performance

requirement.

• Supporting invoices to verify costs.

• Can incorporate commissioning results if available.

• Site-inspection performed by Market Manager at this time.

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Questions

117

Energy Reduction Plan DevelopmentCommissioning Guidelines

Program Guidelines – Section 6

118

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What is Commissioning?• A process which verifies and documents the performance

of new facility equipment

• Objectives:– Ensure design meets functional needs of the owner

– Ensure systems are properly installed and function per design

– Verify and document proper performance of equipment & systems

– Ensure O&M documentation is complete

– Ensure owner’s personnel are properly trained to operate

equipment and systems

• Standard process on New Construction projects

• Critical to performance of building

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What is Commissioning?

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Commissioning in P4P • Confirms the performance assumptions of

energy-efficiency measures documented in the Proposed ERP

• Ensures the facility achieves projected energy savings.

– Energy Management System (EMS) should be incorporated to quantify and confirm energy efficient operations.

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Commissioning Requirements

• Commissioning Plan and CxA identification and qualifications to be included with Proposed ERP

• Justifiable changes to Commissioning Plan to be documented with As-Built ERP

• Commissioning Report

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Commissioning Submissions• Proposed ERP

– Cx Plan Template document provided separately from Proposed ERP; to be attached with Proposed ERP for submission

– Includes appendix for CxA identification and qualifications

• As-Built ERP – Documentation of any justifiable changes to Cx Plan and CxA

from Proposed ERP

• Commissioning Report– No template

– Must follow approved CxPlan

Commissioning Submissions• Once energy efficiency measures are installed,

the Cx process can begin

– Measures installed that are consistent with the Proposed ERP, then the commissioning of that particular equipment can begin prior to As-Built ERP approval.

– Measures that have deviated from the Proposed ERP must first be approved under the As-Built ERP prior to being commissioned.

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Commissioning Team • Owner/Developer

• P4P Partner

• Commissioning Authority (CxA)

• General Contractor

• LEED Consultant (if applicable)

• Architect/Engineer

• Mechanical & Electrical Engineers

• Mechanical & Electrical Contractors

• EMS Controls Contractor

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Commissioning Authority (CxA) • Person or team with extensive building design

and construction experience– Documented experience on 2+ projects of similar

scope

• Must be independent from the design and construction teams

• Shall be retained at the onset of the project-design phase

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CxA Responsibilities• Involved in the following phases:

– Design & Construction

– Performance Verification

– System Testing

– Operator Training

– Final Reporting Phases

• Ensures new construction projects funded through the P4P Program are correctly designed, constructed, and yield to highest industry standards.

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CxA Responsibilities• Verify assumptions used in energy savings calcs are

incorporated into Cx Plan

• Identify any discrepancies between system operation and modeling assumptions

• Ensure commissioning components, specifications and responsibilities are defined and in place prior to bid and construction

• Perform periodical checks during equipment procurement and construction to ensure equipment is installed and operating per design documents

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Commissioning Process• Cx Plan, testing procedures, and reporting need

to reference ASHRAE Guideline 0-2005

• Additional Resources are listed in P4P New Construction Guidelines v3.0, Section 7.9

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Commissioning Process - Design Phase • Engage qualified CxA

• Introduce Cx process to design team and other stakeholders

• CxA will initiate meetings and discuss Cx activities, including Cx Plan

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Commissioning Process - Construction Phase

• Construction Phase Scoping meeting– Organized by CxA to establish roles, responsibilities,

and expectations

– Review Cx Plan and obtain consensus

– Establish pre-testing documentation

– Define testing responsibilities and expectations

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Commissioning Process - Construction Phase

• Regular Meetings and Job Walks– CxA will walk the project periodically to:

• Facilitate Cx Process and check progress

• Observe construction, startup, testing, inspections, etc.

• Coordinate EMS controls sequence

– CxA will provide meeting minutes, field reports, and memos to Partner and Design Team as applicable.

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Commissioning Process - Construction Phase

• Control System Commissioning– Coordinate meetings to track the following topics for

primary and third party furnished controls: • Construction Shop Drawings

• Final sequence of operation

• Process software development, operator work station

• Sensor and device calibration plan

• Pre-functional checklists

• Functional performance test plan

• Trend logging and report generation

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Commissioning Process - Construction Phase

• Pre-functional Testing Checklists (PFCLs)– Provided by GC with CxA oversight, include:

• In-house developed checklists

• Manufacturer start-up checklists

• Field technician furnished startup checklists

– CxA helps develop, review, and comments on proposed PFCLs

– CxA produces binder of PFCLs in preparation for startup and testing

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Commissioning Process - Construction Phase• Functional Performance Testing (FPT) Plans

– Demonstrate operation of: • EMS communication infrastructure and operator work station

• EEM equipment operation

• Sequences of operation

– FTP Plans Include:• Table summaries describing equipment testing, discrepancies, and

corrective actions

• Key performance parameters used in building simulation

– CxA will prepare FPT Plans in preparation for actual testing

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Commissioning Process -Startup, Testing and Optimization Phase

• Pre-Functional Startup, Checkout:– GC confirms completion of construction and pre-startup activities

• Permanent power

• Natural gas

• Domestic cold water & other utilities

• Duct and piping systems are tested and cleaned

• Water treatment and filtration are in place

– CxA will observe and provide comments during this phase for each piece of primary equipment; report discrepancies

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Commissioning Process -Startup, Testing and Optimization Phase

• Functional Performance Testing (FPT) – Execution of FPT plans and documentation of results using the

following strategies• Manual observation, testing and reporting

• EMS Control system trend log reporting and analysis

– Testing will proceed from components to subsystems to systems and finally to interlocks and connections among systems, include life safety.

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Commissioning Process - Closeout Phase

• Closeout Meeting– Held near project completion to address:

• Completion of functional performance testing

• Record documentation

• Training – CxA and GC will confirm that training has been completed

• Warranties– GC will compile warranties, including milestone dates,

inclusions, exclusion, contacts, etc.

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Commissioning Process - Closeout Phase

• LEED Documentation (if applicable)

• Final Commissioning Report – CxA will aggregate relevant data and information pertaining to

the project

– CxA will summarize Cx activities and prepare final Cx Report to be submitted to Partner

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Commissioning Plan• Submitted with Proposed ERP and shall include:

– Narrative of activities to be accomplished during each phase of commissioning

• Design Phase, Construction Phase, Start-up/Testing and Optimization Phase, Closeout Phase

– Proposed operation of control systems

– Functions to be tested

– Conditions under which the test shall be performed

– Measurable criteria for acceptable performance

– Method for reporting and resolving any deficiencies

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Commissioning Report• Should include:

– Information on results for pre-functional and functional performance testing

– Deficiencies found during testing and details of all corrective measures undertaken or proposed

– Confirmation that Cx objectives have been achieved • Design meets functional needs of owner

• Systems are properly installed and function per the design (Proposed ERP or changes as noted in approved As-Built ERP)

• Confirmation that associated equipment and systems are performing properly

• O&M documentation is complete

• Personnel are trained

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Commissioning Report• Some additional information to be included:

– Completed PFPT forms specific to the installed equipment and systems

– Completed FPT forms specific to installed equipment and systems

– Energy Management process variable trend data of key control variables

– EEM warranties, with warranty start dates indicated

– Confirmation that discrepancies between Proposed ERP and As-Built ERP have been addressed, revised and updated

• Report should also be provided to building owner along with system maintenance manuals

EMS Trending Data

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Questions

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Combined Heat and Power

& Fuel Cells

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Overview• Stand alone program

• “Bonus” incentive for projects participating in Pay for Performance

• Systems 1 MW and less handled by TRC

• Systems over 1 MW handled directly by BPU staff

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Incentives

Eligible Technology Size

(Installed Rated Capacity)

Incentive ($/Watt)(2)

P4P Bonus(3) ($/Watt)

(cap $250,000)

% of Total Cost Cap

per project

$ Cap per project

Combined Heat & Power Powered by non-renewable fuel source – Gas Internal Combustion Engine – Gas Combustion Turbine – Microturbine

≤500 kW $2.00

$0.25

30-40%(4) $2 million >500 kW – 1 MW $1.00

>1 MW – 3 MW(1) $0.55 30% $3 million

>3 MW(1) $0.35

Fuel Cells Powered by non-renewable fuel source. Incentives available for systems both with and without waste heat recovery.

≤1 MW w. waste heat $4.00 60% $2 million

≤1 MW $3.00

>1 MW w. waste heat $2.00

45% $3 million

>1 MW $1.50

Heat Recovery(5) Powered by non-renewable fuel source. Heat recovery or other mechanical recovery from existing equipment utilizing new electric generation equipment (e.g. steam turbine)

≤1 MW $1.00 30% $2 million

>1 MW $0.50 30% $3 million

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Footnotes(1) Incentives for CHP systems greater than 1 MW are tiered. For example, a 4 MW CHP system would receive $0.55/watt

for the first 3 MW and $0.35/watt for the last 1 MW. No other incentives are tiered.

(2) In the past, utilities have offered incentives towards CHP and Fuel Cell technologies ranging from $0 to $1,000,000. Although no utility incentives are currently available, should they become available at a later time NJCEP incentives will subsidize utility incentives to bring the combined incentive up to the $/Watt amount shown in the table above, up to the maximum caps listed, to ensure a consistent incentive is paid throughout New Jersey.

(3) Any facility successfully participating in Pay for Performance prior to applying for CHP or Fuel Cell incentives will be eligible for an additional $0.25 per Watt from NJCEP, not to exceed $250,000. This amount is in addition to the “$ cap per project” listed above. The “% of project cost” caps listed above will be maintained.

(4) The maximum incentive will be limited to 30% of total project. This cap will be increased to 40% where a cooling application is used or included with the CHP system (e.g. absorption chiller).

(5) Projects installing CHP, fuel cell, and heat recovery generation will be eligible for incentives shown above, not to exceed the lesser of % per project cap or $ per project cap of the CHP/FC.

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Procedure• Complete and submit CHP/FC Application per instructions

– CHP/FC does not factor into 15% savings of P4P

• TRC and/or BPU reviews submittal and issues a CHP/FC Incentive commitment. – Pre-inspection completed

• Install and commission project within 18 months of CHP/FC approval– Post-inspection completed; invoices reviewed

• Measure performance over 12 month period

Purchase Installation Acceptance of 12

months post-installation data

30% 60% 10%

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Equipment RequirementsEquipment Must Be:

• Natural gas or hydrogen fueled

• New, commercially available, and permanently installed (expansions of existing systems also qualify)

• Installed on the customer side of the meter

• Sized for no more than 100% historical consumption

• Meet minimum 65% LHV annual system efficiency (50% for electric only Fuel Cells)

• Must operate minimum of 5,000 annual full load equivalent hours

• 10 year all-inclusive warranty or service contract

The Following are Not Eligible:

• Prior installations

• Portable and emergency backup power systems

• Used, refurbished, temporary, pilot, or demonstration equipment

• Systems that use diesel fuel, other types of oil or coal for continuous operation.

See CHP /FC Application for more information on eligibility and technical requirements

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Other Evaluation Criteria

• Environmental performance

• Projected system startup date

• Annual system utilization

• Alignment with general program goals

• Project clarity

• Operation as an emergency management center or critical facility

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Sample Calculation600 kW Nat Gas Engine w/heat recovery and absorption cooling

• Total Installed Cost = $1,200,000

• Requested Incentive - 600,000 x $1.00/Watt = $600,000

• Incentive Cap - $1,200,000 x .40 = $480,000

• Final Incentive - $480,000

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Sample Calculation• 4 MW Nat Gas Engine w/heat recovery for HH & DHW

• Total Installed Cost = $5,000,000

• Requested Incentive – First 3,000,000 x $0.55/Watt = $1,650,000

– Second 1,00,000 x $0.35/Watt = $350,000

Final Incentive = $2,000,000

• Incentive Cap - $5,000,000 x .30 = $1,500,000

• Final Incentive - $1,500,000

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153

Questions

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Partner BenefitsExpand your business

– Qualified leads

– Marketing support – Sales literature and Mass Media

– Listed at www.njcleanenergy.com/ssb

– No Partner, no project, no incentive

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Next Steps• Bring in Projects

• TRC holds a monthly Partner conference call– 4th Wednesday of every month

• 888-330-1716

• Access Code: 6415751

– Updates and changes to Program

– Questions & Technical discussions

– Feedback loop with our Partners

– Ideas about improving the Program

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Additional Notes

• Designate one P4P Contact Person within your organization– Control all submissions

– Participate in conference calls

– Collect questions and inquiries for clarification

• Establish shared P4P folder to maintain most recent documents and templates

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Additional Notes• Download most recent ERP documents from Partner Portal:

– http://www.njcleanenergy.com/p4p-portal-login

– Current password: tRP47px

• Keep an eye out for emails from “P4P” – Email questions to P4P@njcleanenergy.com

• Join LinkedIn Group: search for “NJ Pay for Performance Partner Network”

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Additional Notes• Dial-into Energy Efficiency Committee meetings:

– Email webmaster@njcleanenergy.com with “CEC Committee Participation- Energy Efficiency Committee” in subject line and include your name, company or other affiliation, and address to get listserv updates.

– Minutes from monthly EE Committee meetings: http://www.njcleanenergy.com/main/event-listings/clean-energy-council-committees/energy-efficiency-committee-meeting/energy-effic

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Thank you!Final Q&A